Appeal from the United States District Court for the Southern District of California

Michael M. Anello, District Judge, Presiding Argued and Submitted

June 9, 2011—Pasadena, California

Filed December 29, 2011

EXCERPT:

KOZINSKI, Chief Judge:

The Balderases allege that they are immigrants who were rooked by a bank that signed them up for loans it knew they couldn’t afford, on terms they didn’t agree to. These are the facts as recited in the complaint: Mor Cazakov, a mortgage broker, cold-called the Balderases, representing that he could refinance their home, switch them to a fixed rate mortgage and let them cash out $50,000, all without a penalty. Subsequently, Soraya Qassim, a “duly authorized agent” of Countrywide Bank (Countrywide), filled out a uniform residential loan application (URLA) for them and showed up unannounced at their home, urging the Balderases to sign it. But the form was in English, which they can’t read, and it overestimated their income by over $40,000 per year. Qassim told them it was an informal document the bank needed, so the Balderases signed.

Three days later, on the evening of Monday, September 25, 2006, Cazakov showed up at their home with a notary public and loan documents also written in English. He told them that Countrywide “demanded” their signatures “that night” and he couldn’t and wouldn’t leave without getting them. The Balderases protested and asked to arrange the loan signing when their English-literate daughter could attend. But Cazakov said that Countrywide had instructed him to stay until he got the signatures, and he “engaged in a series of actions designed to intimidate, harass, and pressure [the Balderases] into signing the loan documents.” After six hours of unrelenting pressure by Cazakov and several unsuccessful attempts to read the paperwork, the Balderases capitulated and signed the documents just after midnight. On Wednesday, they called Cazakov and asked him to rescind the loans. He refused. They then called Countrywide a day later seeking the same relief. Countrywide also refused, falsely representing it was too late. In fact, the three-day statutory rescission period extended through the next day, Friday, September 29.

The Balderases filed a complaint alleging, among other things, a violation of the Truth In Lending Act (TILA). See 15 U.S.C. §§ 1601 et seq. Countrywide filed a 12(b)(6) motion, which the district court granted. This timely appeal followed.